CREATING OWN BUDGET IN MS PROJECT 2010–PART 2

Hi,

as you remember in my last post created two new custom fields: Budget for Task, and Variance from Actual.  To use this two fields I have to put them in some table. The best approach for my example is to put them into the Cost table:

and then:

and I will get the screen with all fields in the Cost Table. I will put the cursor in the first blank row and I will pick up those two new custom fields:

and I will fill the other field attributes, as shown in the picture below:

and I will get:

OK. I will assign Resource 1 to the Task 1, Resource 2 to the Task 2, etc! After that I will get:

• Task 1 has 1 day duration, e.g. 8 hours, and Resource 1 has \$100/hour and it means    8 * 100 = \$800
• Task 2 has 2 days duration, e.g. 16hours, and Resource 2 has \$200/hour and it means 16 * 200 = \$3.200
• Task 3 has 3 days duration, e.g. 24 hours, and Resource 3 has \$300/hour and it means 24 * 300 = \$7.200
• Task 4 has 2 days duration, e.g. 16 hours, and Resource 4 has \$400/hour and it means 16 * 400 = \$6.400
• Total cost for the project is = \$800 + \$3.200 + \$7.200 + \$6.400 = \$17.600

Now, suppose that work is done for all tasks. Task 1 is 100% completed, and it is on time:

Because budget for the Task 1 is \$1000, and Actual cost is \$800,  Budget – Actual = \$1.000 – \$800 = \$200

Now I will full the Actuals for the Task 2:

and then:

Task 2 has 3 days duration instead of 2. I will get:

Actual cost for the Task 2 is: 3 days (3*8=24) hours * \$200/hour for Resource 2= \$4.800. Budget is \$3.000, and the Budget – Actual is \$3.000 – \$4.800 = –\$4.800.

Now I will say that Task 3 was finished 2 days earlier:

and I will get:

Actual cost for the Task 3 is: 1 day1 (1*8=8) hours * \$300/hour for Resource 3= \$2.400. Budget is \$8.000, and the Budget – Actual is \$8.000 – \$2.400 = \$5.600.

Finally, I will say that Task 4 was finished 5 days latter than planned:

and I will get:

Actual cost for the Task 4 is: 7 days (7*8=56) hours * \$400/hour for Resource 4= \$22.400. Budget is \$4.000, and the Budget – Actual is \$4.000 – \$22.400 = –\$18.400.

And in the Summary Task you can see the total value for the Project budget, and Project Actual cost, and the Budget – Actual = –\$14.400

It wasn’t so complicated, was it?

Regards!

Location: Zagreb, Croatia Occupation: Project Manager Interests: Project Management and MS PROJECT He was born in Zagreb, Croatia at 1963. After completing his college he started working on projects in different business areas (banking, manufacturing, automotive industry, distribution, oil companies, etc.) developing and implementing ERP systems into different companies. He has got a lot of experience working with people in different business processes and also possesses great knowledge in information technologies and financial services. Today he works as a business consultant, adn Project Manager in PERPETUUM MOBILE d.o.o. Zagreb. He is a regular lecturer for Project Management in MS Innovation Center in Varaždin, Logosoft Sarajevo in Bosnia and Herzegovina and SEAVUS GROUP in Skopje Macedonia. He was named the best lecturer of WINDAYS 2008 while his lecture was also voted as the best. In addition, he was in TOP 10 lecturers at the MS SINERGY 2009 and MS VISIA 2009, 2010. Shares first place as the best lecturer of KulenDays 2009 and 2010 and PMI Conference 2009 in Zagreb. He is also a regular lecturer in the MS Community. He is a Certified Accountant and a PMP (Project Manager Professional) and a PMI-RMP (Risk Manager Professional), MCP, MCT, and Microsoft Certified Technical Specialist - Microsoft Project 2010. From 01.01.2012 awarded with MVP (Microsoft Most Valuable Proffesional - Microsoft Project)!
This entry was posted in MICROSOFT PROJECT, Microsoft PRoject 2010, MS PROJECT 2010, PMI, PRoject Management and tagged , , , , , . Bookmark the permalink.

4 Responses to CREATING OWN BUDGET IN MS PROJECT 2010–PART 2

1. Zaw says:

This topic is really useful.

2. Crystal says:

u shut him up, huh?

3. Ajai says:

Thansks for you post. But you are unnecessarily complicating it by introducing custom columns. Go to cost table, MPP would show you, fixed cost, total cost (fix cost+variable resource cost, based on the mentioned billing rates), Baseline cost, Actual Cost, Cost Variance as you keep on tracking the project at any point in time.